Let’s learn the types of online marketplaces and their business scope in the future, which can be predicted in 2021.
Online marketplaces is an eCommerce website or app that facilitates people out there on the internet from many sources like search engines, mobile apps, and other mediums. Here the marketplace owner or admin does not own any inventory; their business is to help other people’s inventory (i.e. store’s vendors) to the shopper and facilitate a transaction.
eBay and Amazon are the ultimate examples of the multi-vendor marketplace; they sell everything to everyone and deliver it anywhere.
Because of the true convenience, online shoppers choose the online marketplace over regular eCommerce websites. Over the last decade, the number of multi-vendor marketplaces has exploded.
For example, if you’re creating a department store back in the days, it would be an online marketplace; we call them department stores 2.0. Because users access vendors’ inventory electronically and the online marketplace doesn’t have to own it before availing it to the consumers.
All the products being sold by suppliers are available to consumers. There is real-time information about the products being presented to consumers on an online marketplace’s site or app. It’s a much broader classification than any online store could offer.
Consumers don’t like using apps from single retailers. In reality, shoppers don’t like using eCommerce apps from a single vendor or retailer. They curiously download an app that offers a broader product range with broad choices than one store can offer.
Types of online marketplaces to exist in 2022
There are three major types of online marketplaces are there in deals in the eCommerce realm, they’re:
A vertical marketplace sells products to its end consumers from many sources. But they are all the same type. For instance, If an abc.com website sells only jewelry and related products online. Alongside, the website has taken part in guaranteeing authenticity, and because jewelry is such a high-ticket term, that’s a critical value-add.
The website falls in the category by giving each piece of jewelry in the store; where a unique identifier when it’s listed on the website. Abc.com adds value by verifying the authenticity of a product.
Unlike the vertical marketplace, the horizontal marketplace sells products of many types, but they all share a characteristic. Many believe that a horizontal marketplace drives traffic and visitors to pursue their passions and buy and sell from each other simultaneously.
Also, these types of marketplaces present the ability to shop at multiple retailers simultaneously. Users can see the products and services from various vendors altogether at the same time in the same app.
Hence, the prime aim of a horizontal marketplace is to offer consumers a variety of products across many types of retailers.
Global online selling marketplaces
The global marketplace is an online platform that sells everything. The ultimate example is eBay, which has about 150 milions users – over 1 billion items available for sale. Almost 80% of the products are new and unique and made about $90 billion worth of products this year.
How did they make it happen?
Simply by availing shoppers with fair prices with interactive products comparison and make them feel like they’re getting the correct value.
What’s motivating online marketplace platforms?
Most types of eCommerce today are moving faster and more efficient in providing utmost convenience to its users. Nothing is ever more motivating than an Amazon-like tremendous competitor with virtually unlimited resources, sophisticated capability, and potential.
For instance, Amazon itself is a hybrid marketplace where they offer products of their own and other vendors to offer their niche products. While also providing a platform for buyers and sellers to transact through the Amazon website.
Many other famous eCommerce websites also fall in the hybrid category. Also, they provide a place for users to offer their products in marketplaces that are springing up on various ecommerce websites.
These marketplaces have no way to decline their trend even in the coming years. We’re seeing an explosion of marketplaces now as part of its growth.
Curious to take part in this eCommerce trend called any of those online marketplaces and their types?
Because those who can survive and compete effectively against big players in the eCommerce market can create brand value and profitability.